The USD/JPY appears to be making a strong break over 110.97, with a closure above this level dramatically raising the risk of a big base. According to Credit Suisse analysts, the next major barrier is around 111.93/98, followed by 112.23/40.
“USD/JPY has now surpassed the previous year’s high of 110.97. We remain bullish and expect a rise to long-term and more important resistance, which begins around 111.93 and extends to the 2019 high of 112.40.”
“While we expect a cap in the 112.40 area at first, we are inclined toward a break higher in due time, which would see a much more significant base created, marking a more major turn higher and a move to 114.00 next.”
“Near-term support has moved to 111.01/110.93, which should now hold to keep the breakout going. Following that, the next level of support is the aforementioned 13-day exponential average at 110.63, which we expect to hold if it is reached.”/n
